Oil Eases as Washington Weighs Sanction Relief for Shadow-fleet Tankers
(MENAFN- Your Mind Media ) Oil prices fell on Thursday as expectations of sanctions easing on shipping weighed on the market. Washington is considering relaxing sanctions on shadow-fleet vessels that have carried Russian, Iranian and Venezuelan crude, a move aimed at improving the movement of barrels. Higher production from the Middle East is also contributing to pushing crude prices down.
However, the broader backdrop remains supportive for prices as physical risks in the Middle East have not disappeared. Threats to energy infrastructure in Saudi Arabia persist, while shipping around the Strait of Hormuz remains disrupted. The IEA has warned that further geopolitical pressure could interrupt the recovery in supply, limiting the scope for a deeper decline in prices.
Looking ahead, confirmation that Washington will ease tanker sanctions could extend the pullback, particularly if shipping conditions improve and more crude moves through constrained routes. US inventory data due later today provide another near-term catalyst, with a sizeable draw likely to push prices up. Conversely, any escalation affecting Saudi export capacity or transit through Hormuz could quickly restore upside pressure on prices, although alternative Saudi export routes and emergency stock releases should continue to temper the extent of any rally.
However, the broader backdrop remains supportive for prices as physical risks in the Middle East have not disappeared. Threats to energy infrastructure in Saudi Arabia persist, while shipping around the Strait of Hormuz remains disrupted. The IEA has warned that further geopolitical pressure could interrupt the recovery in supply, limiting the scope for a deeper decline in prices.
Looking ahead, confirmation that Washington will ease tanker sanctions could extend the pullback, particularly if shipping conditions improve and more crude moves through constrained routes. US inventory data due later today provide another near-term catalyst, with a sizeable draw likely to push prices up. Conversely, any escalation affecting Saudi export capacity or transit through Hormuz could quickly restore upside pressure on prices, although alternative Saudi export routes and emergency stock releases should continue to temper the extent of any rally.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Comments
No comment